All Topics / General Property / stagnated rent!

Viewing 5 posts - 1 through 5 (of 5 total)
  • Profile photo of high flyerhigh flyer
    Member
    @high-flyer
    Join Date: 2003
    Post Count: 48

    Help and opinion needed!
    I acquired a -ve geared IP 3 yrs ago. I have kept the IP in a tiptop condition, I have had the place upgraded and the exterior painted. I have not lost a week rent over this period except the initial 3 weeks after settlement. I even bought the tenant a X’mas hamper during festive seasons. The tenant are great and appreciative of what I have done and have indicated that they would like to stay at the place as long as possible. Rent was alway on time but sometime the water usage are slow to come.
    I am just about to enter another 12 month lease and the PM is advising not to increase the rent.
    I would like to keep the tenant but I would also appreciate the additional $ the ease the pain of interest repayment. What is your thought on the this any suggestion will be greatly appreciated.
    [worried]

    Profile photo of westanwestan
    Member
    @westan
    Join Date: 2002
    Post Count: 1,950

    Hi flyer

    i think you should do some investigating into the market rent of your home. if similiar sproperties are renting for the same as your home, if you put the rent up the tenant leaves and you end up with a vacant home that others will not rent because it is too expensive. However if discover you are 30pw below the average for your type of property why not put it up $15, the tenant will still be rewarded witrh lower than market rent for there part of the deal in being a good tenant and you get more $$$.
    Did you ask the PM why he/she wouldn’t put up the rent ? It might be a friend of theirs who is the tenant ? I once had a PM who put her son into a home for $10 less than the rate we had agreed on.

    so you need to do some homework i feel.

    all the best

    westan

    I find +ve cashflow deals in New Zealand which I sell to other investors. To be on my database send an e-mail to [email protected]

    Profile photo of high flyerhigh flyer
    Member
    @high-flyer
    Join Date: 2003
    Post Count: 48

    Thanks westan. May be I have to do some research on the rental market at the area!
    The property is head lease to a government department and sublease to its clients.
    I do not think the PM is in any way related to the tenant!

    Profile photo of maximusmaximus
    Member
    @maximus
    Join Date: 2003
    Post Count: 189

    Hi there High Flyer. Westan summed this one up nicely. I believe if the rents in the area where your I/P is are renting out marginally higher than your one (say $5-10), it may not be worth possibly losing your tenant by increasing the rent, only to find you might have to charge the same rent to attract a new tenant. Obviously, if rents are much higher in your area, then go ahead and discuss it with your P/M. Hope this helps in some way.

    Regards
    Marty

    Profile photo of NilsOmanNilsOman
    Member
    @nilsoman
    Join Date: 2002
    Post Count: 2

    Unfortunately for us investors, the rent has been very stagnant for a long while.
    I bought a good rental property in Kew, Melb in 1991. I got $ 760/mth then in rent. Today I get $1080/mth. Both rents were/are at market.
    The truth is that it is extremely cheap to rent a place In Melbourne today. Once the interest rates starts to go up and the number of investors go down we should be able to increase the rents to the magic 5% point again.

Viewing 5 posts - 1 through 5 (of 5 total)

You must be logged in to reply to this topic. If you don't have an account, you can register here.